In a surprising turn of events, Amazon has decided to halt new content development for its MMO, New World, amid substantial layoffs affecting 14,000 positions. This has sparked concerns about the future of its The Lord of the Rings MMO.
On October 28, Amazon announced a sweeping reduction of 14,000 roles, marking one of the largest layoffs in its history. This decision echoes similar moves by other tech giants like Microsoft and Meta, although Amazon is reportedly performing well. The driving force behind these cuts? AI. In a communication to employees, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, explained:
Some may ask why we’re reducing roles when the company is performing well. Across our businesses, we’re delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results. What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.
Impact on Amazon’s Gaming Division
Reports suggest that Amazon’s gaming division is facing significant reductions, primarily affecting its Irvine and San Diego offices. Staff cuts and decreased development efforts are expected, with New World being one of the titles impacted. While New World will continue to be online through 2026, this marks the beginning of its decline. The game, once a bright spot for Amazon with peak concurrent players reaching 913,634 on Steam in 2021, has seen dwindling numbers since.
Despite the focus on downsizing MMOs, Amazon plans to continue developing Amazon Games Montreal’s strategy game March of Giants, the Tomb Raider game by Crystal Dynamics, and “casual and AI-focused games” for Luna, its cloud gaming service. Maverick Games in the UK is still progressing with its racing game, and Amazon will keep publishing titles like Lost Ark and Throne & Liberty in western markets.
The Future of The Lord of the Rings MMO and Tomb Raider
Amazon is still in the early stages of developing a new The Lord of the Rings MMO, with little information available since its announcement in 2023. Christoph Hartmann, Amazon Games boss, confirmed that they have ten games in development, including Tomb Raider and this highly-anticipated MMO. These projects aim to bring a fresh perspective rather than replicate existing games. Despite the challenges, Hartmann emphasized the importance of finding a unique angle before moving forward.
The development of Tomb Raider seems to be largely unaffected by the turmoil at Embracer Group, despite recent layoffs at Crystal Dynamics. Hartmann assured that the studio is insulated from the upheavals, allowing it to maintain focus on upholding the high standards expected for the new Tomb Raider installment. Crystal Dynamics continues to push forward, although recent layoffs and previous transitions under Embracer have raised some concerns about stability.
Crystal Dynamics remains committed to Tomb Raider’s development, undeterred by recent setbacks and management shifts within Embracer Group.
Crystal Dynamics was tasked with reinvigorating the Perfect Dark project before its acquisition by Embracer in 2022. Since then, the studio has undergone several rounds of layoffs, with the latest involving 17 staff members. The future workforce composition remains uncertain as the studio navigates these changes.